Tag Archives: ultra-micro economics

Opinion: Small plus small plus small equals BIG

By David Boyle | Tue 13th May 2014 - 5:22 pm

In the heady days of the Thatcher government, when the hideous mistakes of Big Bang were being forged and coming to fruition, I used to run an excellent magazine called Town & Country Planning. In those days, we were extremely exercised by the idea of the huge and mounting cost of rundown private sector homes. Who was going to repair them?

We don’t talk about that problem any more. This is not because it was ever exactly solved, but because of one of the more benevolent effect of rising house prices, before the oligarchs came in, was that it made a bit of DIY worthwhile. Instead of the government shelling out to repair all those privately-owned dwellings, the young owners went down to B&Q and bought a paintbrush.

It was a lesson to me that neither the conventional public sector nor the conventional private sector may be best placed to tackle the really intractable problems. And it makes me wonder whether the great unanswered questions about rebalancing the economy might eventually be answered – not by the long night of the soul as we wait for the Treasury, but by the places themselves.